Goldratt’s Rules of Flow: Chapter 18 – “Additional Gates”

[If you haven’t read the original version of The Goal – it’s a better book. Here’s a chapter-by-chapter video summary, and a <60 second summary too.]

Marc has dinner with his parents, Laura and Isaac. A reminder that Isaac is the owner of the business – they apparently haven’t spoken in a month, which is not a good indicator for Isaac’s leadership capabilities. Isaac likes the results of the ‘Rules of Flow’ so far, but shoots down the idea of implementing a “Gate Zero” because he, “understands the customers better.” After Marc leaves, Laura says that his ideas were good, but Isaac rebuffs her as well and we learn that he has some disease that has not been disclosed to his son and that he is under letter of intent (“LOI”) with a private equity firm to sell the business.

It’s easy to put on another hat and see Isaac as a terrible boss and father who doesn’t listen to his son / employee while withholding critical information – his untreatable terminal illness and pending sale of the company. Write this story with that angle and it becomes a warning tale about narcissism and other dark triad activity.

Best Writing, Quotes

“It’s been a month since they last talked in Isaac’s office and Marc hasn’t seen him since.” Page 103

“We finished a lot of the projects that were close to completion and I expect that things wills tart moving faster now.” Marc to his father Isaac – Page 104

“At the very beginning, before we start working on the bids.” Marc suggests a Gate Zero and is rebuffed, Page 105

“They have their own practices and its not our place to dictate to them how to go about their business.” An upset Isaac reminds Marc he’s in charge, Page 105

“But he can see that the customers have a lot to benefit from their help as well, if they could reduce the pain of going back and forth with multiple potential suppliers, answering questions regarding missing elements in the bids.” Marc thinks about the benefits of a Gate Zero, page 106

“Marc tries to continue the discussion but his father refuses to listen.” Page 106

“And you should trust him, too.” Marc’s mother, Laura, to his father, Isaac – Page 107

“But now the competition is stronger than ever, the large companies rule, and more and more small companies like ours go out of business.” Isaac defends his condescending view of Marc’s ideas using macroeconomic forces – Page 107

“Next they will ask him to sign a sixty-day no-shop clause, committing he will not solicit offers from other buyers while Laramie takes the time to do their due diligence.” Isaac is entering into a deal with a private equity firm, Laramie, because he has some illness for which he will not get treatment and has not told his children – Page 108

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1 Response to Goldratt’s Rules of Flow: Chapter 18 – “Additional Gates”

  1. Pingback: Goldratt’s Rules of Flow: A Summary of Part 2 of 3 – Chapters 9 – 19, Pages 47 – 116 | Fred Lybrand

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